SBI Cap­i­tal Sprints Up the Bond Sales Lad­der

The Economic Times - - Money -

Mum­bai: State Bank of In­dia’s in­vest­ment­bankingar­m­doesn’tat­tract half as much at­ten­tion as it ought to, be­ing a unit of the na­tion’s big­gest lender, but all that is chang­ing fast.

Dur­ing the Jan­uary-March quar­ter last fi­nan­cial year, SBI seems to have bro­ken sev­eral records by climb­ing 12 notches in the bond sales charts, beat­ing even pri­vate sec­tor ri­vals such as ICICI and HDFC Bank. It’s now ranked sec­ond only to Axis Bank, show data from Bloomberg In­dia bonds league ta­ble.

“A com­bi­na­tion of pri­vate and pub­lic bond is­suances have helped us boost our per­for­mance,” said Var­sha Pu­ran­dare, CEO, SBI Cap­i­tal. “The tax-free bonds, in par­tic­u­lar, gave op- por­tu­ni­ties to ar­range more bond sales. Bond in­vest­ment ap­petite was quite good last year.” The in­vest­ment bank­ing arm has ar­ranged 51 bond sales worth ₹ 15,031 crore, gain­ing sig­nif­i­cant mar­ket share at 15.3% against 2.7% a year ago when it was ranked 14. State-owned com­pa­nies raised more than ₹ 40,000 worth of tax-free bonds last fi­nan­cial year, where in­vest­ment bankers such as SBI Cap par­tic­i­pated ac­tively along with other ma­jor ar­rangers.

Axis Bank re­tained its top slot with 79 deals val­ued at ₹ 18,024 crore. The third-largest pri­vate sec­tor lender by as­set size, too im­proved mar­ket share to 18.4% com­pared with 15.6% dur­ing the same pe­riod last year.

In the past years, ac­cord­ing to some mar­ket par­tic­i­pants, SBI Cap was Top Six (Jan-Mar Qtr) Axis Bank SBI* ICICI HDFC Bank AK Cap­i­tal Edel­weiss Fin *SBI is SBI Cap 18.38 15.33 12.49 6.2 5.55 5.4 Mar­ket Share (%)

seen as a lag­gard in the league ta­ble, at least for bond sales, as it was seen as a slug­gish or­gan­i­sa­tion, be­ing part of the pub­lic sec­tor lender.

Of late, things ap­pear to be chang­ing with a new man­ag­ing di­rec­tor at the helm. In the past one year, SBI Cap has hired some se­nior peo­ple work­ing with pri­vate sec­tor big­gies.

“Not be­ing a pri­vate player some­times ap­pears to be dis­in­cen­tive for us as we need to go the ex­tra mile to con­vince our clients,” Pu­ran­dare said. “We have now proved our ef­fi­ciency stan­dard.”

Some of the bond is­sues ar­ranged by SBI Cap in­clude Nabard, IRFC, NTPC, Dalmia Ce­ment, Pi­ra­mal En­ter prise NHAI, In­di­a­b­ulls Fi­nance and oth­ers.

“SBI Cap was one of our in­vest­ment bankers for tax-free bond sales,” Amalor Pa­vanathan, deputy man­ag­ing di­rec­tor at Na­tional Bank for Agri­cul­ture and Ru­ral De­vel­op­ment. We have re­ceived some pos­i­tive feed­back about them from mar­kets be­fore they were ap­pointed via the bid­ding process. Ser­vices of­fered were as per mar­ket stan­dard.”

Bond Sales League

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